Bitcoin wallet provider Xapo said it has received conditional approval from Switzerland's financial market watchdog to operate in the country in a regulatory breakthrough for companies that provide safekeeping for the virtual currency.

"After almost two years of substantial effort and investment, Xapo has received conditional approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate in Switzerland," Xapo CEO Wences Casares said in a blog on the company's website.

The approval depended on several factors, including membership of a "self-regulatory organization," Casares said, but added that the company was optimistic of meeting the conditions and being able to serve non-U.S. customers from Switzerland.